All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.
Dear brother,
Allah has favored us with the ability of sailing. Allah Says this in many verses. Allah Says (what means):
• {He it is Who enables you to travel through land and sea.} [Quran 10:22]
• {…and the ships which sail through the sea with that which is of use to mankind,} [Quran 2:164]
The scholars say that this verse is an evidence that it is lawful to go sailing while travelling or fighting in Jihaad or seeking any other benefit. This lawfulness is limited to taking all precautionary measures before going into water. Before starting to sail, one should make sure that the sea at that time is not rough or agitated, and that the boat he is using is good for sailing, as it is the case of most boats nowadays.
So, if the safety side is more probable according to the general facts of sailing, then one could go sailing. But if the sea at the expected time of sailing is running high or could be rough according to the experts in the field, it becomes prohibited to embark upon it as this is exposing oneself to great danger. The Prophet said: “Whoever spends his night sleeping on a roof where there is no wall to stop his feet (from letting him fall down while asleep) the result of his act is not rewardable and it may even be blameworthy, and whoever goes sailing in the sea while it is agitated the result of his act is not rewardable and it may even be blameworthy.” [Ahmad]
Also, if the boat is out of order or not good for sailing, its ruling is similar to the ruling of the rough sea as in both cases the person endangers his life.
As for the Hadeeth you mentioned, it is narrated by Abu Daawood and others. But all its narrators mention that it is not sound or that its chain is unknown. So, it is a weak Hadeeth.
Allah knows best.